When We Say That a Price in a Competitive Market

question 18

Multiple Choice

When we say that a price in a competitive market is "too high to clear the market" we usually mean that (given upward-sloping supply curves) :

• A)no producer can cover his costs of production at that price.
• B)the quantity supplied exceeds the quantity demanded at that price.
• C)producers are leaving the industry.
• D)consumers are willing to buy all the units produced at that price.
• E)quantity demanded exceeds quantity supplied at that price.

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